i got into this blog biz to write about asset markets
the kapshow

the scheinvert theory

after the pre figurement or prefigment of last whenever

Myron Scholes
would should
still could be a target
of this site

here's
a recent gabbling spiel by myron S
just before the fall...

"Right now,
we're quiet because the lion is tame,
and maybe
it's the central bankers of the world
who are keeping it tame...Individuals will say,
oh, things are now quiescent
and will be forever,
and they'll take more risk again...
My belief
is that because the system is now more stable,
we'll make it less stable
through more leverage,
more risk taking...."

today

"..the information set is huge, it's gigantic....
decision time becomes elongated.."

the reporter writes

" and speculators hold back their capital
just when their services are most in demand.
The lack of liquidity itself
then becomes a factor in asset pricing,
leading to swift,
sharp drops in values. "
the reorter continues..

"You may be tempted to slightly arch your eyebrows right now
if you remember LTCM.
Mr. Scholes expects as much.
He's made his peace with it.
He says he feels like the woman
in the local paper
who, whatever she does,
will always be remembered
for one thing:
"Mrs. Jones,
who was falsely accused of the ax murder
of her husband
in 1944,
recently had a garden party
for 10 of her friends." ...the reporter then thrusts home

"Was the financial system ever in danger from LTCM's collapse,
as widely predicated in press accounts
at the time?
I half-expected Mr. Scholes
to pooh-pooh
the worry as apocalyptic.

Instead he pauses,

finally saying:

"I don't know the answer. ..."

the reporter adds:

"We'll never know.
A phone call was made.
The New York Fed agreed
to intervene
and organize a notorious "bailout"

.

Mr. Scholes
"In life you pay tuition, right? Sometimes you pay too much tuition.
Sometimes learning is costly." ...